XJO down marginally today -0.0% – flat. Volume was very low – we...

XJO down marginally today -0.0% – flat. Volume was very low – we haven’t seen volumes like this since the end of the Festive Season in early January. Today’s volume was about 70% of the 20-Day Average volume.

The Index remains sitting on triple support. Today’s range was relatively narrow – not quite as small as Friday’s – but still quite small. That’s two days in a row with narrow range days. We’re building up to a big move. Both of the past two days have shown buying pressure with relatively long lower tails, and the Index finishing near the high of the day. A big up day would confirm the bullish bias, but this still can break either way. The MACD Histogram rose today – so some shorters would have been taking profits – that probably accounts for the buying pressure. But we need to see more than that to presume we’re going to revert to the upside.

Watch for a closing break tomorrow above either the high or low of today’s range to provide some short term direction.

Sector Performance today:

Most sectors just fluffed about today. The standout was Energy up +0.8%. Next best was this year’s good performer – Utilities +0.5%.

Here’s the chart for the Energy Sector:

Energy has been a poor performer for months. It is in a bearish phase – with the 50-Day MA below the 200-Day MA. The current 3-Day pattern is bullish but I wouldn’t read too much into it. Energy might be having a small counter trend rally – but until it can break out of its bear channel – this is one for the traders.

REDBACKA